Is Colorado a Good Place to Start a Business?

Date: August 01, 2018

 

Colorado received mixed results on a new national study of “Best States to Start a Business.”

The state ranks No. 10 overall, but also ranks No. 32 for “business costs.”

“Starting a business is never easy,” the study’s authors write. “According to U.S. Bureau of Labor Statistics data, about a fifth of all startups typically don’t survive past year one of operation, and nearly half never make it to their fifth anniversary. But startups fail for different reasons, a ‘bad location’ among the most common.”

According to the study, WalletHub ranked 50 states “across 25 key indicators of startup success to determine the most fertile grounds in which to launch and grow an enterprise.”

More broadly, the study examined three dimensions: business environment, access to resources and business costs.

The top five overall states: Texas, Utah, Georgia, Montana, and Oklahoma. The bottom five were Pennsylvania, Vermont, Rhode Island, New Hampshire and Hawaii.

According to NFIB Colorado State Director, Tony Gagliardi, “More Colorado Small businesses are fast becoming victims of the infamous Gallagher Amendment, which allows residential property owners to pay only 45 percent of the property taxes collected leaving businesses to pay the remaining 55 percent.”

With property values escalating at exponential rates small businesses are faced with paying upwards of 60 percent increases in property taxes or forced to close their businesses and attempt to relocate outside the metro area where, hopefully, the property tax is lower. Currently, residential property owners pay 7.2 percent of assessed values, leaving businesses to pay a 29 percent assessed value rate. 

Read more about the study here: https://wallethub.com/edu/best-states-to-start-a-business/36934/

Related Content: Small Business News | Colorado | Economy

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